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Value Proposition Design

The document discusses value proposition design which focuses on creating value for customers. It involves analyzing customer segments through customer profiles which examine their jobs, pains, and gains. A value map then analyzes the value proposition's products/services and how they relieve customer pains and create gains. The goal is to achieve fit by addressing important customer jobs, reducing significant pains, and generating meaningful gains. Focusing on critical jobs, pains, and gains that are not already addressed helps attract customers.

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207 views4 pages

Value Proposition Design

The document discusses value proposition design which focuses on creating value for customers. It involves analyzing customer segments through customer profiles which examine their jobs, pains, and gains. A value map then analyzes the value proposition's products/services and how they relieve customer pains and create gains. The goal is to achieve fit by addressing important customer jobs, reducing significant pains, and generating meaningful gains. Focusing on critical jobs, pains, and gains that are not already addressed helps attract customers.

Uploaded by

manuela
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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VALUE PROPOSITION DESIGN

IS FOCUSED ON VALUE CREATION, IS THE SET OF VALUE PROPOSITION BENEFITS THAT YOU DESIGN TO ATTRACT
CUSTOMERS

We don’t talk about features; we talk about benefits.

Customer profile: analyzes a customer segment in a structured and detailed way. It is composed by
- Jobs
- Pains
- Gains

Value map: Analyzes the value proposition in a more structures and detailed way. It is composed by
- Products and services
- Pain relievers
- Gain creators

Customer profile

Customer jobs: What your customers are trying accomplish


 It could be the tasks they are trying to perform, the problems they are trying to solve, the needs they are
trying to satisfy
 You need to consider the customers view when understanding jobs
 What you think is crucial could not be a job customers want to get done

Three main types of customer jobs to be done

1. Functional jobs: when customers try to complete a task, or solve a problem


2. Social jobs: when customers want to look, good or gain power or status
3. Personal / emotional jobs: when customers seek a specific emotional state such as feeling good or secure

Supporting jobs: these jobs come from these roles

1. Buyer of value: jobs related to comparing offers, deciding which products to buy, completing a purchase
or receiving a product or service
2. Co-creator of value: jobs related to posting product reviews and feedback or being part of a product or
service design process
3. Transferred of value: jobs related to canceling a subscription, or reselling it.

Job context
 Customer jobs are subject of the specific context in which they are completed
 The context can limit what can be done or not
 For example: going to the movies with your kids is different than going with your partner
Job importance
 Not all jobs are important to your customer
 Some are crucial to a customer’s work or life because failing to accomplish them could have great
repercussions
 Some are not relevant because they consider other things more important

Customer pains

 They relate to any issue that disturbs customers before, during and after trying to get a job done or
prevents them to accomplish it
 Pains include risks that may bring potential bad outcomes, related to getting a job done badly or not at all

Three types of customer pains

1. Undesired outcomes, problems and characteristics: pains are functional, social, emotional or supporting
2. Obstacles: issues that prevent customers from getting a job done or that slow them down
3. Risks: what could malfunction that brings critical negative effects.

Questions to define pains

How do your customers define too costly?


What makes your customers feel bad?
How are current value propositions underperforming for your customer?
What re the main difficulties and challenges your customer encounter?
What negative social consequences do your customer encounter or fear?
What risks do your customer fear?
What’s keeping your customers awake at night?
What common mistakes do you customers make?
What barriers are keeping your customer from adopting a value proposition?

Customer Gains

 They related to benefits your customer desire


 Some gains are demanded, expected or wanted by customers and some would amaze them
 Gains include functional utility, social gains, positive emotions and cost savings

Four types of customer gains

1. Required gains: gains that are crucial for a solution to work. The MVP
2. Expected gains: gains that are demanded from a solution, even if could work without them
3. Desired gains: Gains that are more than what is expected from a solution, but we would love to have if we
could
4. Unexpected gains: gains that are more than what is expected from a solution, and we do not know they
want them.
Questions to define the gains

Which saving would make your customer happy?


What quality levels do they expect, and what would they wish for more or less of?
How do current value propositions delight your customers?
What performance and quality do they expect?
What positive social consequences do your customers desire?
What are the customer looking for most?
What do customers dream about?
How do your customer measure success and failure?
What would increase your customer’s likelihood of adopting a value proposition?

VALUE MAP

Products and services


 The list of what you offer. All the products and services your value proposition contains
 This list should enable you customers complete either functional, social, or emotional jobs
 Products and services do not create value by themselves. They are valuable when related to a specific
customer segment and their jobs, pains and gains.

Types of products and services


1. Physical tangible goods: the ones you manufacture
2. Intangible products: services that you produce with knowledge or technology
3. Digital products: products which generate a digital asset
4. Financial products: products which generate capital to invest or lend

Pain Relievers:
 Describe how your products and services reduce customer pains.
 They should stablish how you aim to eliminate or reduce that disturbs your customers before, during or
after they are trying to complete a job
 Value propositions that matter focus on pains that are significant to customers. They also focus only on
few pains that they diminish extremely well.

Questions to define pains: could your products and services…

Produce saving?
Make your customers feel better?
Fix underperforming solutions?
Put an end to difficulties and challenges your customers encounter?
Help your customers better sleep at night?

Gain Creators
 Describe how your products and services create customer gains
 They should stablish how you will generate benefits that your customers expect, desire, or would be
surprised by having them. This includes functional utility, social gains, positive emotions, and cost savings
 Gain creators do not need to cover all gains identified either. Focus on those that matter to customers and
your offerings can shine on.

FIT

 You achieve fit when customers are attracted to your value proposition
 This takes place when you get important jobs done, reduce pains, and generate gains that matter to your
target customers
 Achieving fit is the essence of value proposition design.
 Customers know they can’t have it all. Therefore, focus on those gains that truly make a difference to
them.
 Also, customers have a lot of pains. Focus on those that are critical to them and are not taken care of well
enough
 Your customers are the judge, jury and executioner of your value proposition. They will not care about
loyalty if you do not prove to them that you can offer fit.
 Check marks mean that products and services relieve pains or create gains and directly address one of the
customer’s jobs pains or gains.
 Xs show which jobs, pains and gains the value proposition does not consider

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